...Tottenham Hotspur Case There are many football clubs listed in the London Stock Exchange among them Tottenham Hotspur Football is a one of the leading English professionals’ club and also a member of Premier League. This club has also been listed at London Stock Exchange. Since 2001 Daniel Levy is the chairman of Tottenham Hotspur plc and is thinking of possible options and potential players to take his club to the top position of the British Premier League. In order to succeed in his objective and to establish a sound foundation for the long term financial success, he thinks two things are very important Building of new stadium, Improvement in team quality through prudent player achievements In order to achieve these two main objectives of the chairman the following are the three alternatives which have been scrutinized using Discounted Cash Flow Analysis: either to operate the current stadium which has 36,500 seats and keep a single goal scorer, either to build a new stadium having 60,000 seats capacity with an external financing, signing of new top scorer, playing in newly built stadium. Under the first alternative solution, the Net Present Value for Tottenham Hotspur plc, during the last 13 year forecasted period, was calculated and found to be £67.68M. This calculation will encourage the stakeholders to keep the current stadium in use. While the company has a high operating current cost with Net Income coming to about 2% of total revenues. If Tottenham Hotspur follows...
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...Discounted Cash Flow Analysis for Continuing Operations A. Assumptions The following assumptions have been made when calculating the discounted cash flows for A) Continuing with current operations B) Building a new stadium C) Hiring a new striker D) Building a new stadium as well as hiring a new striker. Working capital would increase each year with revenues at 9% each year until the final year in which it would continue at 4% with revenues. Maintenance Capex and Capex depreciation is assumed to increase at 4% per year. Net investment is Capex Depreciation subtracted from Maintenance Capital Expenditures. The WACC was used in order to find the appropriate discount rate. This was accomplished by finding the cost of equity, using the beta provided as well as the risk free rate, and also the cost of debt which is assumed to be 5.25%, or the amount of interest paid for Long Term Debt (Exhibit 4). The appropriate discount rate to be used is 8.39% for all alternatives to this project. Working capital as well was estimated by the difference of current liabilities and current assets. The perpetual growth model was used to estimate a terminal value. B. Discounted Cash Flow Analysis Using forecasts from the pro forma income statements and applying key assumptions, the cash flows for each year until 2020 were found. Cash flows included change in net working capital as well as change in net investment. Forecasted information from Exhibit 5 was used to find Revenue, Operating...
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...Chapter 7 1. A process by which organizations select objectives, establish processes to achieve objectives, and monitor performance is |a. |enterprise risk management | |b. |internal control | |c. |organizational governance | |d. |risk assessment | ANS: C 2. A process, effected by an entity’s board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may effect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives. |a. |enterprise risk management | |b. |internal control | |c. |organizational governance | |d. |risk assessment |...
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...9-209-059 REV: MARCH 23, 2009 LAUREN COHEN JOSHUA COVAL CHRISTOPHER MALLOY Tottenham Hotspur plc In early 2008, Daniel Levy, chairman of Tottenham Hotspur Football1 Club, was contemplating a bold move for the organization, one that he hoped would help vault the team into the upper echelon of the English Premier League (“Premiership”). Despite the club’s long and storied history, Levy felt that the team’s future success likely required a significant investment in physical assets, notably the development of a new stadium. Tottenham currently played in an old stadium called White Hart Lane with a capacity of only 36,500 fans, but had the opportunity to build a new stadium on some adjacent property. Most of their key competitors, such as Arsenal, Manchester United, and Chelsea, had newer or larger stadiums, and were able to leverage the added revenues these stadiums provided to gain a competitive advantage in the cutthroat player acquisition market. Levy had to decide if the benefits of a new stadium were worth the substantial commitment of time and resources that its construction would entail. Background Founded in 1882, the Tottenham Hotspur Football Club was one of the oldest teams in the Premiership. Its rich history featured a successful product on the pitch, as evidenced by major trophies in each of the past six decades--a feat matched only by Manchester United, and a series of innovations off the pitch as well. The club became the first publicly-owned football club...
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...Name: Alan Sugar Born: 24/03/1947 (Age: 66) From: Hackney, London Famous for: He's the man who loves to say "You're Fired!" on his hit television show, The Apprentice. Relationship status: Sir Al is married to his wife Ann. Twelve years younger than his three older siblings, Alan Sugar was the child of low-income, working-class Jews and raised in Upper Clapton Road - England. By the age of 12, he was rising at 6am every day to boil beetroots for a local ‘greengrocer’. Four years later, Sir Alan's earnings, after school and at weekends, were far better than his father, Nathan, who worked in a tailoring sweatshop. Leaving school at the age of 16, Sugar proceeded to obtain a post in which he worked briefly for the civil service as a statistician in the Ministry of Education. He also started selling car aerials and electrical goods out of a van he had bought from his £50 savings. In 1968, aged 21, he set up his own business, selling electrical products from intercoms to retractable car antennas and called it Amstrad, referring to (Alan Michael Sugar Trading). The company began as a general importer/exporter and wholesaler, but soon specialized in consumer electronics. By 1970, the first manufacturing venture was underway. He achieved lower production prices by using injection moulding plastics for hi-fi turntable covers, severely undercutting competitors who used vacuum-forming processes. Manufacturing capacity was soon expanded to include the production of audio amplifiers...
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...Course Tutor: Jon Davy | Year: 2012/2013 | Unit: 13 Leadership in Sport | Tutor: Jon Davy | Assignment Title: Effective Sports Leaders | Handout date: W/C 24/9/2012 | Submission date: W/C 8/10/2012 | Leadership in Sport Outcomes Covered | Outcome | P1 | M1 | D1 | | | Achieved | | | | | | Learner declaration: The work submitted is entirely my own work. Any help or information from other sources has been acknowledged in the text. Name: Dylan Yarborough Signed: Date: 11/05/2012 Assessor comments: Resubmission Date: | Assessor signature: Date: | Learner comments: (when resubmitting, use this space to direct the tutor to where the alterations/additions can be found) | Internally verified? YES / NO | Grades agreed? YES / NO | Name: | Signed: | Date: | Assessor seen and agreed | Signed: | Date: | Assignment Scenario | You are training to become a physical education teacher and have been asked to produce some information to help new aspiring sports leaders/coaches. So know it’s over to YOU..!Task 1a: You need to describe and explain four qualities, four characteristics and four roles of an effective sports leader (P1 & M1) (page 3).Task 1b: You need...
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...questions key to the future of Tottenham Hotspur in the coming years: 1. Using a DCF, what is the value of Tottenham, and at its current price, is Tottenham fairly valued? The value of Tottenham is £13.80, and at it’s current price of is £, is overvalued. Executive Summary: This case analysis answers a few questions key to the future of Tottenham Hotspur in the coming years: 1. Using a DCF, what is the value of Tottenham, and at its current price, is Tottenham fairly valued? The value of Tottenham is £13.80, and at it’s current price of is £, is overvalued. Executive Summary: This case analysis answers a few questions key to the future of Tottenham Hotspur in the coming years: 1. Using a DCF, what is the value of Tottenham, and at its current price, is Tottenham fairly valued? The value of Tottenham is £13.80, and at it’s current price of is £, is overvalued. Executive Summary: This case analysis answers a few questions key to the future of Tottenham Hotspur in the coming years: 1. Using a DCF, what is the value of Tottenham, and at its current price, is Tottenham fairly valued? The value of Tottenham is £13.80, and at it’s current price of is £, is overvalued. Executive Summary: This case analysis answers a few questions key to the future of Tottenham Hotspur in the coming years: 1. Using a DCF, what is the value of Tottenham, and at its current price, is Tottenham fairly valued? The value of Tottenham is £13.80, and at it’s current...
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...Alan Sugar- The Essex boy that showed ‘em all who’s boss. When Alan Sugar was 12 years old, he woke up one Monday morning thinking that he was going to be his own boss and setup his own business in the middle of what they called a recession. His father hadn’t got much money as he worked in a garment factory and decided to create Alan’s own school uniform. Alan’s dad barely could afford £13 and the Sugar family lived in a very rough area. By Alan’s standards he thought his father “wasn’t the greatest tailor in the world” and always feared that his hard earned weekly cash was going to fall onto the floor and taken by kids that took the mickey out of him. Alan hated being made to stand out amongst the crowd. However he had a keen business eye, by the time he was 15 he a few enterprises going including deliveries of ginger beer, milk and paper rounds and shifts for the bakers and local supermarket. Little did he know did he know he had begun his long career as an entrepreneur and soon to become business leader. Today, we know Lord Sugar as the witty, wise and blunt multi-millionaire with pockets that are becoming ever deeper. Lord Sugar’s worth is estimated at over £700 million and an annual turnover of £30 million. Not bad for someone who famously started with only £100 selling TV aerials from the back of van in 1969. The key to Lord Sugars wealth was formed when he setup his first formal electronics company called Amstrad which begun...
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...Drive through any given village in Bali and you’ll see vibrantly colored fighting roosters in woven cages pecking at the green-tipped grass at their feet. Come later and you’ll see the cocks taken out of their cages to be stroked and caressed by local men who sit together, enjoying the last rays of sunshine while discussing the qualities of their proud and elegant birds. Bali, like many other nations, has banned cock fighting as a cruel sport, although the practice is still allowed on the Island of the Gods for ceremonial purposes. These fighting birds are as much a part of Balinese Hindu rites as the burning of incense and giving offerings to the gods. Breeding the roosters, some of which boast feathers with a golden luster that evokes songket, takes place up in the cool, mountainous region above Gianyar. In a small hamlet called Malet, the birds are big business. Village head I Ketut Ludea says that while Malet raises about 600 roosters every year, most are sold to other communities nearby. The rest are used for local ceremonies. “In our village we must sacrifice birds before turning the soil to plant our crops, so we need around 250 birds for these ceremonies,” Ludea says. “We can sell the other 350 birds, which does not make this our most important revenue for the village, but a side job that many of us use for the education of our children.” Such children include Ledea’s 12-year-old grandniece, who studies English twice a week in nearby Tampak Siring...
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...Rachel Burgess Dr. Shawn Schulenberg PSC 207-201 After reading Geertz article, “Deep Play: Notes on the Balinese Cockfight,” I decided that I agree with the author’s idea that culture could be seen as a set of texts to be interpreted. However, for me, I believe that after considering the above; it is important to then understand the vital question of how texts are created and where do they come from? In this sense, this is where history comes into play. I believe cockfighting can be identified in many complex ways relating back to human nature itself. However, the social origin of status in Balinese society is never really discussed. It is important to decide whether or not these cockfights are metaphorical to the battles over status rather than battles over money. To my beliefs, it seemingly appears that the article could be considered slightly agnostic due to the fact that Geertz believes ones status and character can be defined through the distinguished success of their fighting cock. However, I would like to argue that this should not be taken as truth. In other words, I suggest that in the event and processes of cockfights are only symbolizing the idea of establishing power of ranks in Balinese villages. The main purpose of the article is the interpretation of different cultures. At first, Geertz was failing to conduct his research adequately due to the lack of recognition of existence that he and his wife were receiving from the people of Bali. Eventually however...
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... In the argument Norcross wrote about two different but similar stories to prove his point. In the first story a man was in an accident that had damaged his godiva gland, which means his body can no longer produce the hormone cocoamone and he can no longer taste chocolate. Knowing that humans do not produce cocoamone he finds out that puppies do when they are under intense stress and severe trauma. This man loves chocolate so much he abuses puppies to death so he can taste chocolate again. In the argument it’s clear that this mans life is not on the line if he cannot taste chocolate. He just wants to enjoy the taste of chocolate and he doesn’t seem to care that puppies are suffering for his pleasure. In the second story Norcross addresses factory raised meat that people purchase. Animals that are raised on a factory farm live in highly stressed, abusive, and cramped areas. He makes a clear point to people who would make the excuse of there one purchase making an affect. He proves to them that one out of ten thousand can safe 25 chickens lives. He clarifies that one person can start to make a difference. Norcross states in both of these situations people do not need these to survive. If they were to stop eating chocolate or factory raised meat their health would probably be better off. Machans argument is over wether or not animals should have rights or liberation. Machan talks about the morality of natural rights and the utilitarian for animals. He states...
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...Broadwater Farm riot From Wikipedia, the free encyclopedia The Broadwater Farm riot occurred around the Broadwater Farm area of Tottenham, North London, on 6 October 1985. The events of the day were dominated by two deaths. The first was that of Cynthia Jarrett, an African-Caribbean woman who died the previous day due to heart failure during a police search at her home. It was one of the main triggers of the riot in a context where tension between local black youth and the largely white Metropolitan Police was already high due to a combination of local issues and the aftermath of another riot which had occurred in the Brixton area of London the previous week following the shooting of a black woman (Dorothy 'Cherry' Groce) during another police search. The second death was that of PC Keith Blakelock, the first police officer since 1833 to be killed in a riot in Britain.[1] Contents * 1 Death of Cynthia Jarrett * 2 Day of disturbances * 3 Death of PC Blakelock * 4 Aftermath * 5 Trials * 6 Inquest * 7 See also * 8 References * 9 Bibliography Death of Cynthia Jarrett At 13:00 hrs on 5 October 1985 a young black man, Floyd Jarrett, was arrested by police, having been stopped in a vehicle with an allegedly suspicious car tax disc.[2] He was taken to nearby Tottenham police station and charged with theft and assault (he was later acquitted of both charges). Five and half-hours later, D.C. Randle and three other officers decided to search his...
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...process for learning and testing the Knowledge of London is outlined in the TPH publication ‘Applicants for a Taxi Driver’s Licence - The Knowledge of London Examination System’. 2. Stages 3, 4 and 5 - General Only ask points within 6 miles radius of Charing Cross (All London candidates only). Answers should be based on the shortest route available, unless otherwise specified by the examiner (e.g. use of Oxford Street acceptable if shortest). Traffic is irrelevant unless specified. Using more than one bridge across the River Thames is acceptable and preferred if it is the shortest route. Road works expected to last less than 26 weeks must be ignored. Where it is apparent that road works will last longer than 26 weeks (e.g. Crossrail works at Tottenham Court Road j/w Oxford Street), a candidate would be expected to find an alternative route (and be marked accordingly) after four weeks from the commencement of works. U-turns are only acceptable at locations where they are exclusively provided for by taxis e.g. Bishops Bridge Road, Marylebone Road (at Baker Street Station). Page 2 of 4 Setting down on the right is acceptable if there are no restrictions or obstructions and it is legal to do so. Traffic is an irrelevant factor. Turnarounds (i.e. using additional streets in order to turn the taxi around) should only be...
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...LSE / Lent Term – 2015 FM421 – Applied Corporate Finance Case Assignments • You will find an Excel file with all the exhibits from the case on Moodle. • Assignments MUST be submitted before class on Moodle. • Your assignment should not exceed 5 pages including appendices. “Tottenham Hotspur” To Do 1. Read case: HBS 9-209-059: Tottenham Hotspur Plc. There is an Excel spreadsheet to help you with the base numbers. 2. Read lecture slides. Case Preparation Questions State clearly all assumptions that you make and defend their choices whenever possible. 1. Assume that Tottenham Hotspur continues in their current stadium following their current player strategy. Perform a discounted cash flow (DCF) analysis using the cash flow projections given in the case. For all CAPM calculations, use the risk-free rate given in Exhibit 1 and assume a market premium of 5%. Also assume that Tottenham’s debt has zero beta. At its current stock price of £13.80, is Tottenham fairly valued? 2. Provide an alternative valuation of Tottenham based on multiples. Compare your findings with those from Question 1 and, in the light of your results, discuss the relative advantages and disadvantages of multiples versus DCF valuation methods. 3. Using a DCF approach, evaluate each of the following decisions: a) Build the new stadium b) Sign a new striker c) Build the new stadium and sign a new striker. • Note that the past 10 years of Premiership...
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...Case Tottenham Hotspur 1a) Change in NWC = cash requirements + inventory + receivables – payables. There will be no cash requirements, because of the hint in the question excess cash should not be included so therefore change in NWC will be 1,17 + 19,99 – 64,40 = -43,24 for the year 2007. For the next years until 2020 will use the revenue growth as a measurement to calculate the NWC for the next years. The revenue growth is 9 percent per year so the NWC will grow by 9 percent per year. FCF = (Revenue – Costs – Depreciation) x (1 – tax rate) + Depreciation – Capital Expenditure – change in working capital. So when I fill in this formula I get: 71,1 – 69,1 – 2,2 x (1 – 0,35) + 2,2 – 2,26 - -43,24 = 45,79. See for the next years the last page of this document. 1b) that is because most of the football clubs won’t have a large sum of accounts receivables and have a small inventories. “Normal organizations” will have much higher accounts receivables and much bigger inventories. 1c) E(R) = RFR + βstock (Rmarket – RFR) according the case the risk free rate is 4,57% and the beta is 1,29 and the market risk premium will is given in the question 4,57% + 1,29 x 5% = 11,02 % is the expected return on equity. 1d) Cost of debt can be calculated by dividing the interest expense / amount of equity x 100%. So if we put in the numbers we get the following: (2,26/ 45,73) x 100 = 4,94%. For calculating the weighted average cost of capital after tax we use the following formula: WACC = (45...
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